Hawaii Remote Work Laws 2026

Legal Framework

Statutory Authority: HRS Chapter 386
Administering Agency: Department of Labor and Industrial Relations, Disability Compensation Division

Contact Information:

• Website: https://labor.hawaii.gov/dcd/
• Phone: (808) 586-9188
• Address: 830 Punchbowl Street, Honolulu, HI 96813

District Offices:

• Hilo: (808) 974-4000
• Kauai: (808) 274-3350
• Maui: (808) 984-8210

General Coverage Requirements

As Stated in Law:

According to HRS §386-121, workers’ compensation coverage is generally:

Required for:

• Employers with one or more employees
• Coverage applies from the first day of employment
• Includes full-time, part-time, temporary, and seasonal employees

Coverage Options:

Employers may secure coverage through:

1. Insurance policy from authorized Hawaii insurance carrier
2. Self-insurance (with DCD approval and proof of financial solvency)
3. Membership in workers’ compensation self-insurance group
4. For certain employers: Captive insurance arrangements

Penalties for Non-Compliance:

According to statute, failure to secure required coverage may result in:

• Fines up to $2,000 for first violation
• Up to $5,000 for subsequent violations
• Personal liability for benefits
• Possible criminal penalties

Source: HRS §386-121, §386-129

Hawaii’s Workers’ Compensation System

System Structure:

Hawaii operates a competitive state fund system. According to the Disability Compensation Division:

What this generally means:

• No state-operated insurance fund
• Employers must obtain coverage from private carriers or self-insure
• Multiple insurance carriers compete in the market
• State regulates carriers and approves coverage

This differs from states with monopolistic state funds or state-operated insurance programs.

Coverage Standard: “Arising Out of and In the Course of Employment”

Legal Standard:

According to HRS §386-3, workers’ compensation generally covers injuries that:

• Arise out of employment, AND
• Occur in the course of employment

General Interpretation (based on case law and guidance):

“Arising out of employment” generally means:

• Injury has causal connection to employment
• Employment exposed worker to particular risk
• Injury results from hazard connected with employment

“In the course of employment” generally means:

• Injury occurs during work hours
• Injury occurs at work location
• Employee engaged in work-related activity

Both elements must typically be present for coverage.

Remote Worker Coverage Considerations

⚠️ COMPLEX AND FACT-SPECIFIC: Coverage of home office injuries involves detailed factual analysis. The following is general background only.

General Legal Principles:

Application of workers’ compensation law to remote workers may consider:

Relevant Factors (based on general principles):

• Whether employee was engaged in work activity at time of injury
• Whether injury occurred in designated work area
• Whether injury occurred during work hours
• Whether activity was authorized by or benefited employer
• Whether activity served employer’s interests
• Connection between injury and employment

⚠️ Important: This list is not exhaustive and no single factor is determinative. Each case depends on its complete factual circumstances.

Illustrative Scenarios (Educational Purposes Only)

Scenario Category: Work Activities in Home Office

Example Situation 1:

Employee trips over computer cables in designated home office while walking to retrieve work documents during work hours.

General Observations:

This type of scenario may share some characteristics with situations that have been found compensable in other contexts, such as:

• Activity was work-related (retrieving work documents)
• Occurred in work area (designated home office)
• During work hours

However, compensability would depend on complete factual analysis including:

• Whether home office was designated and approved work area
• Whether employer knew of and authorized home office setup
• Whether hazard (computer cables) was connected to employment
• Other specific circumstances

This is not a coverage determination. Actual determination would be made by Hawaii DCD based on all facts.

Example Situation 2:

Employee develops carpal tunnel syndrome from extended computer use while performing work duties remotely.

General Observations:

Repetitive stress injuries from work activities may potentially be compensable in some circumstances. Determination depends on factors such as:

• Medical documentation linking condition to work
• Whether condition arose from employment activities
• Nature and extent of work-related computer use
• Causal relationship between work and injury
• Other relevant medical and factual circumstances

Consult medical professionals and Hawaii DCD for actual determinations regarding repetitive stress claims.

This is not a coverage determination.

Example Situation 3:

Employee falls down stairs in home while going to check on child during work hours.

General Observations:

Personal comfort activities unrelated to work duties may be less likely to be considered work-related, based on general principles. However, specific facts matter, including:

• Whether employee was relieved of all duties
• Whether activity had any connection to employment
• Whether activity occurred in work area or during work time
• Nature and purpose of activity
• Other circumstances

This is general background only. Not a coverage determination.

Scenario Category: Commuting and Travel

Example Situation:

Remote employee drives to office supply store to purchase materials specifically requested by employer during work hours.

General Observations:

Travel undertaken for employer benefit during work hours may share characteristics of compensable activity. Factors may include:

• Whether travel was at employer’s direction
• Whether travel served employer’s interests
• Whether travel occurred during work time
• Other factual circumstances

Going and coming rule: Generally, injuries occurring during ordinary commute to/from work are not compensable. However, exceptions may exist for special errands or employer-directed travel.

This is not a coverage determination.

⚠️ REMINDER ON SCENARIOS: The examples above are purely illustrative for general educational purposes. They do not constitute legal advice, coverage determinations, or predictions. Each workers’ compensation claim is evaluated individually based on complete facts by Hawaii DCD.

Benefits Generally Available

According to HRS Chapter 386, benefits may include:

Medical Benefits

General Framework (from statute):

• Reasonable and necessary medical treatment
• Hospital services
• Surgical services
• Prescription medications
• Physical therapy and rehabilitation
• Durable medical equipment

Provider Requirements:

• Employee generally entitled to choose own physician
• Certain approval requirements may apply for specific services
• Medical fee schedules apply

Source: HRS §386-21

Wage Replacement Benefits

Temporary Total Disability (TTD):

When employee cannot work at all due to injury:

• Generally 66⅔% of average weekly wage
• Subject to statutory maximum and minimum
• Payable after 3-day waiting period
• Maximum duration varies by circumstances

Temporary Partial Disability (TPD):

When employee can work but with limitations:

• Generally 66⅔% of difference between pre-injury and current wages
• Subject to statutory maximum
• Duration varies

Permanent Partial Disability (PPD):

For permanent impairment:

• Based on scheduled injury or unscheduled
• Calculated according to statutory schedule
• May involve percentage of impairment

Permanent Total Disability (PTD):

For injuries resulting in complete inability to work:

• Generally 66⅔% of average weekly wage
• Lifetime duration
• Subject to statutory maximum

Source: HRS §386-31, §386-32

Vocational Rehabilitation

According to HRS §386-25, if injured employee cannot return to previous work:

• Evaluation for rehabilitation potential
• Vocational services if determined feasible
• Training or retraining assistance
• Job placement assistance

Source: HRS §386-25

Reporting Requirements

For Employees (General Framework from Statute):

According to HRS §386-90, injured employees should:

1. Notify employer immediately of injury
2. Seek medical attention as needed
3. File written notice of injury within:
   
   • 90 days for occupational disease
   • Promptly for traumatic injury

For Employers (General Framework from Statute):

According to HRS §386-95, employers must:

1. Report to insurance carrier promptly
2. File Form WC-1 (Employer’s Report of Industrial Injury) with DCD:
   
   • Within 7 days if injury involves lost time beyond day of injury
   • Within 7 days if medical expenses exceed $200

Penalties for Late Reporting:

Failure to report timely may result in penalties. Exact deadlines are strictly enforced.

Source: HRS §386-90, §386-95

Claim Process Overview

General Steps (based on DCD guidance):

For Employees:

1. Report injury to employer immediately
2. Seek necessary medical treatment
3. Obtain Form WC-5 (Employee’s Claim) from employer or DCD
4. Complete and submit claim form
5. Provide medical documentation
6. Cooperate with investigation

For Employers:

1. Provide Form WC-5 to injured employee
2. Complete Form WC-1 for insurance carrier and DCD
3. File required reports within deadlines
4. Cooperate with claim investigation
5. Maintain records

Claim Decision:

• Insurance carrier (or self-insured employer) investigates
• Claim accepted or denied
• If denied, employee may appeal

Dispute Resolution

If claim is denied or benefits are disputed:

Level 1: Disability Compensation Division

• Request hearing before hearing officer
• Present evidence and testimony
• Decision issued

Level 2: Labor and Industrial Relations Appeals Board (LIRAB)

• Appeal DCD decision
• De novo review
• Board decision issued

Level 3: Courts

• Appeal LIRAB decision to Hawaii courts
• Judicial review

Legal representation is advisable for disputed claims.

Source: HRS §386-73, §386-87

Best Practices for Remote Work (Recommendations Only)

⚠️ Note: The following are general recommendations compiled from various sources. They do not constitute legal requirements and may not be suitable for all situations. Consult legal counsel and safety professionals.

For Employers:

Consider:

• Written remote work policies addressing safety
• Home office setup guidelines or requirements
• Ergonomic equipment provision or reimbursement
• Documentation of remote work locations
• Training on injury reporting procedures
• Clear communication about coverage expectations
• Safety self-assessment tools for remote workers

For Employees:

Consider:

• Setting up dedicated, safe work area
• Documenting work location and setup
• Reporting injuries immediately to employer
• Maintaining clear work hour boundaries
• Following employer safety guidelines
• Keeping records of work-related activities

Resources and Contacts

Hawaii Disability Compensation Division:

• Main Office: (808) 586-9188
• Website: https://labor.hawaii.gov/dcd/
• Forms: https://labor.hawaii.gov/dcd/home/forms/

For Legal Advice:

• Workers’ compensation attorney
• Hawaii State Bar Association Lawyer Referral Service: (808) 537-9140

For Medical Information:

• Treating physician
• Medical specialists
• Vocational rehabilitation professionals